Key Highlights

  • August gas production averaged 810m3 per day (approximately 28,600 scfd), a 4% increase over July's average of 778m3 per day, despite an unusual weather event affecting output.
  • Instantaneous gas production rates at LF-07 have exceeded 50,000 scfd in recent days, with reservoir pressures continuing to decline.
  • A drilling contract has been signed with Major Drilling, with drilling and well recompletions scheduled to commence once equipment arrives on site.
  • The Gas to Power Project has completed Front End Engineering Design (FEED), with implementation planned for later in the year and a targeted operational date of December 2026.

August Production Performance

TMK Energy Limited (ASX:TMK) has reported that daily gas production continues to increase at its 100% owned Gurvantes XXXV Pilot Well Project (PWP) in Mongolia. Average gas production during August was approximately 810m3 per day, equivalent to approximately 28,600 standard cubic feet per day (scfd), representing a 4% increase over July's average gas production rate of approximately 778m3 per day.

This result was achieved despite LF-03 being offline awaiting a pump replacement, as well as an unusual weather event involving a lightning strike to local power infrastructure that caused minor flooding and briefly affected production during the month. Water production across the field during August remained stable at approximately 437 barrels of water per day.

Gas Production Spikes at LF-07

The company noted further gas production spikes at LF-07 being closely monitored, with instantaneous gas production rates exceeding 50,000 scfd recorded in recent days, while reservoir pressures continue to decline. Chief Executive Officer Dougal Ferguson said the Pilot Well Project delivered another month's performance during August, with gas production ticking up from the prior month and approaching the all-time record average monthly gas production achieved in March 2026, when the gas rate first spiked for an extended period.

2026 Work Program and Drilling Contract

During August, TMK signed a drilling contract with Major Drilling and issued a purchase order for three well re-completions, including the re-completion and pump replacement at LF-03, which has been out of service for several months. Both the new drill hole, LF-08, and the re-completion program are targeting near-term increases in gas production, intended to prove commerciality and facilitate the booking of the company's maiden reserves.

The majority of long lead items for the 2026 Work Program are currently being transported to Mongolia and are expected to arrive at the PWP site in the coming weeks, allowing drilling and well re-completion operations to commence.

Gas to Power Project Progress

Following a recent site visit, the company's Gas to Power Project (GPP) partner, Dashvaanjil Group LLC, has finalised the design and engineering for the project ahead of detailed commercial negotiations and implementation later in the year. The GPP is currently planned to be operational by December 2026, subject to commercial arrangements being finalised and a final Investment decision being made by TMK and Dashvaanjil in October.

Mr Ferguson said the average gas rate for August was somewhat negatively affected by the unusual weather event, and that a concerted effort is being made to fast-track the GPP to improve power reliability and increase the Pilot Project's uptime. He said he looks forward to finalising commercial discussions with Dashvaanjil during an upcoming visit to Ulaanbaatar.

Conclusion

TMK Energy has reported a 4% increase in average daily gas production during August at its Gurvantes XXXV Pilot Well Project, alongside continued gas production spikes at LF-07 and progress toward its 2026 drilling program following the signing of a drilling contract with Major Drilling, while its Gas to Power Project has completed design and engineering ahead of a targeted operational date of December 2026.